I'm not necessarily saying this will happen, but you can't refute that with 57% of the stock available, Rochon CAN do a hostile takeover for a majority share of the company. It may not matter what the Goergens want.
He has telegraphed that the $16.75 per share was only the first offer, and they remain open to future discussions. The recent rapid stock price decline was justified before we heard Rochon's comments, but now that he has made these statements, the price decline occurred for the incorrect reasons. It will rebound.
Additional quotes from Rochon. This doesn't even require reading the tea leaves. He's telling you another offer is coming.
Based on this quote from Rochon, can it be any clearer that a second offer will be forthcoming? That's a rhetorical question obviously.
I would have agreed a couple days ago, but I'm back on the bullish side. There is still a Rochon put under BTH it's just not as strong as it was a couple days ago. That can swing back the other way quickly.
There is another bid coming for BTH. Rochon is not going to let this go. As he said the door remains open to doing a deal with BTH. He offered $160 million cash for the remaining 57% of BTH's shares. There's room for this deal to go higher. Just adding $40 million to the deal will push the deal price $21 per share. There will come a point where the Goergens have to accept. There is something Rochon can do with BTH as a majority but partial owner, that he cannot if he owns the whole company. I'm going to let the board members figure that out for themselves, but when it clicks in your head what he'll do and consequently why the deal price is almost inconsequntial, you will buy as much BTH as you can. The thing that has fundamentally changed is that we are now talking about cash deals. The Goergens cited the lack of committed financing as a reason to reject the deal the first time. When their concerns are addressed, their backs will be against the wall to do a deal for shareholders. The deal price is going up, and the Goergens will eventually accept.
A bird in the hand is worth two in the bush. I'll take $16.75 today any day over $19 who knows when or IF.
I understand the Goergen's point that CVSL was only bidding for the remaining 57% of the shares not owned by the Goergens, but it still drives their stock price up to $16.75!!!! That's what makes no sense. The business is in deterioration, and they refuse a 50% increase in the stock price. That will increase the Goergens wealth by at least $35 million!! It's insane to refuse that deal, or at least counter for a higher price. The flatly reject it is completely irresponsible to the shareholders.
To turn down $16.75 per share cash for their business when the stock is barely clinging to the 10's. It's insane!!!!!! I'm stunned at the lack of management responsibility towards the shareholders.
Someone may not like my comments but the stock continues to fall and the reasons are obvious to any rational thinking person.
The stock has made a new low every day for the past three days. It’s either a fabulous deal at these levels or it’s a value trap. Management either has the confidence this stock will be worth more or it doesn’t. They can make the statement by showing their confidence with a massive buyback.
The family should step in and buy at least 1 million shares. They should take their own savings and a personal loan if necessary and step in and buy $10 million worth of stock. That would make a statement to the market the stock is undervalued. Since BTH cannot buy back shares this is the only way it’s going to happen. The irony is that it would be phenomenal for the Goergens themselves. The other millions of shares would make them wealth vastly in excess of the $10 million they put into this company. It would create the short squeeze that everyone knows can be created under the correct circumstances. The stock’s fate is in management’s hands now.
There are only a two things that can rally BTH stock, otherwise it can stay on this downward spiral. First, management can do a buyback. I don’t believe the company can do this based on the bond indenture, but the Goergens can personally buy more stock. If they stepped in and bought 1 million shares, the stock would zoom higher. Second, CVSL makes a cash bid. Highly unlikely but the stock would also zoom higher. I know a lot of people hope that there is a third factor that can help which is the business performance. That’s a huge variable at this point. It’s possible the Visalus model event helped recruit promoters, and they had a great holiday season, but that’s all speculative at this point. The way to rally the stock is to shake the shorts out of their position. A buyback or CVSL bid is the only way this will happen. If you go long, whether you know it or not, this is what you are betting on. All these other points about Visalus or whether the MLM is a viable business model are irrelevant.
Maybe you should regurgitate your lithium and get a little more worried about what’s happening, if you actually have any skin in the game. The CVSL bid for BTH is over. That ship has sailed. Anyone betting on that possibility now, with the second rejection, is just foolish. As I’ve said anything is possible, but the situation is not favorable at all for a deal being completed. The only ones who can create shareholder value are BTH itself or the Goergens. There’s no new bidder riding in to save the day. I’d like to see the Goergens personally step in and buy a million shares. That would show the confidence in the stock and the short covering rally would absolutely occur. Commit $10 million right here in stock purchases. Reduce the float so that it is IMPOSSIBLE for BTH shorts to cover. Then you’d see real shareholder value created.
This is a disaster and Goergens are powerless to stop it because the company cannot buy back stock. There is no reason to own this stock between now and February, and if they can’t turn around the business performance this quarter, there may not be a reason to own it after February. This is so bad those 120 $10 puts that traded last week may actually go in the money by the end of the week the velocity is so intense. The Goergens really screwed the shareholders by not taking the revised CVSL deal.
Again great call. The stock is down over 10% since your brilliant theory. Try analyzing facts next time.